Lethbridge Real Estate News

LETHBRIDGE
REAL ESTATE PREDICTIONS
FOR 2016

March 22, 2016:

The
outlook for this year can be summarised in one word OIL.
At time of writing, oil is hovering at around US$40 a barrel, a far
cry from the US$100 a barrel we came to accept as normal, just a
short time ago.

The concerns are many and varied. Fracking has become a new and
controversial phenomenon in the US. Hydraulic fracturing, is the process
of drilling and injecting high pressure fluid into the ground in
order to fracture shale rock, thereby releasing the natural gas and
oil inside. There are presently more than 500,000 active gas and oil
wells in the US. The increase in productivity from these wells has
reduced world oil prices.

OPEC and major
producers like Saudi Arabia, concerned about the long term effects
on their own productivity, have determined to allow the price to
continue falling, thereby making it uneconomical for some fracking
companies to continue production. Further pressure on oil prices has
come from Iran. Long deprived of selling it's oil because of
sanctions, Iran is about to re-enter the market in a big way.

Perhaps the
largest issue though, is the slow down in Chinese industrial output.
As the second biggest consumer of oil in the world, this slow down
is a concern. All of these issues have implications for Alberta oil
producers and consequently the province as a whole.

A great time to buy

So what does that mean for buyers? In short,
it is a great time to buy, there is an really excellent selection of
pre-owned and new homes
available and interest rates are still at historically low levels.
For sellers, it means a little more competition and a need for realistic
pricing. Whether you are a buyer or seller a professional realtor®is
essential to represent your best interests and negotiate the best
possible deal on your behalf. My fees for sellers are reasonable and
negotiable and there is no fee whatsoever for buyers.